EPA Administrator Lisa Jackson met with Congressional leaders yesterday and essentially backed down from any significant oversight of carbon emissions for the foreseeable future.  Coal and oil lobbyists from around the country could be heard dancing in the streets. 

According to a report by the New York Times, Lisa Jackson made clear that "no stationary sources will face greenhouse gas regulations this year and that small sources will not be subject to permitting requirements any sooner than 2016. EPA is also considering "substantially" raising the thresholds in its proposed "tailoring" rule to exempt more facilities from requirements that they minimize their greenhouse gas emissions".

This is just another example of the Obama adminstration talking out of both sides of their mouths.  You cannot go before the world like he did at the climate change summit in Copenhagen and cojole polluting countries to make sacrifices for the good of the world and then come home and make the easy decisions to save your political hide.

After initially gaining some bi-partisan support in Congress the clean energy bill has gotten lost in the pile of agenda items by this administration, a pile that is overwhelmed by health care maneuvering and deal making. This decision by the President and the EPA Administrator has just raised the stakes on climate action through Congressional legislation.  If legislation fails there will be no doubt who will be to blame for the failure to reduce emissions in this country.  More importantly all that rhetoric coming from the President during his campaign and at Copenhagen will be viewed as a farce.   

Governor Charlie Crist's budget for 2010-2011 provides 2.1 billion for Florida's environment and includes all of the 176 million in clean energy funding from the federal government in the last fiscal year.  Total funding set aside for the state solar rebate program? $10 million.  That is barely enough to satisfy all of the Floridians who have already invested in solar and are still on the waiting list for rebates. That means that the Governor's allotment of funds will do nothing to spur additional incentive for energy consumers to invest in solar energy.  
 
With this budget and a large amount of federal funding to spend, the Governor missed a golden opportunity to add some stability to what is a highly volatile solar energy market in the state of Florida.  Refunding the Solar Rebate for 1-2 years or more would have been an effective way to spur additional investment and send a clear signal that Florida is going to be a leader in solar energy.

Certainly government incentives are not a long term solution to the weakness of the Florida solar market.  What is going to sustain the market is innovation and good business practices by companies looking to build their market share.  Also, creative purchase agreements at the municipal level will go a long way toward stability.

However, in order to invest in technology and the resources needed to deliver on quality products and services solar businesses need an initial impetus for consumers to take a serious look at the benefits of solar energy investment.  Given current economic conditions Florida consumers are wary of the significant initial investment required for solar energy despite the economic benefits of doing so.

Governor Crist appears to have spread out the money from the federal government to several different programs to set a wide base for a renewable energy industry whose direction is still very much unclear.  If he is planning to augment solar incentives with additional federal funding from the clean energy bill that is being debated in Congress then this budget will have been a good start.  If this is a one time distribution of significant funding then it is simply not enough to provide any significant boost to the solar energy market in Florida. 

Grid tie solar refers to solar energy that is connected to the energy grid and involves setting up a net metering agreement with your utility to sell back energy for an agreed upon price.  Grid tie is certainly the route to take if your local municipality rewards you by paying back a higher rate or provides some financial incentive to do so.  One such program is the Gainesville feed-in tariff. Residents of Gainesville who invest in solar energy and produce enough energy to feed it back to the utility company are rewarded with a payback of $.32 per killowatt hour for 20 years.    

Off grid solar refers to solar energy that is connected to your home energy grid and used during hours of sunlight to power your home thereby reducing the amount needed from your utility company. Off grid solar can be used to reduce energy costs  in a cost-efficient manner when applied effectively. 

Many utility customers in Florida are billed on a two tiered basis where you are charged one rate for the first 1000kwh of power and a higher rate for energy use above that 1000kwh threshold. For example, your bill may look something like this:

Energy Charge

First 1000 KWH                1000 KWH @ 5.5690              55.69

Above 1000 KWH             188 KWH @ 6.5690                12.35

Fuel Charge

First 1000 KWH                1000 KWH @ 5.6000              56.00

Above 1000 KWH             188 KWH @ 6.6000                12.41

Targeting that amount of energy use above 1000kw with investment in solar energy is the best way to get the highest return on your investment. 

Let's face it.  Your energy use is not the only thing you are billed on.  There are several surcharges and taxes that are multiplied by your energy use in order to arrive at your total bill.  By investing in solar energy you can avoid paying the higher tiered rate and reduce your exposure to additional energy taxes. 

Both grid tie and off grid solar investment have tremendous energy saving benefits.  Consult your
local government and stay up with state incentives for solar energy to decide which option
makes the most economic sense for you.  For more information on federal, state and local
incentives for renewable energy visit DSIRE.

****Updated 12/29/2009

Some updated numbers on the Gainesville FIT program provided by Gainesville Regional Utilities:

* 563 kW have been completed through the FIT program.

* Because the FIT queue was filled so quickly another 452kW has been installed through the GRU net metering program since last March.

* In total GRU has had over 1MW of solar installed in less than a year (compared to 230kw between the entire period of 1980-2009).

On March 1, 2009, Gainesville Regional Utilities in Gainesville, Florida began the first solar feed-in tariff program in the United States patterned after  European countries such as Germany in which payment is based on “the estimated generation costs of the renewable energy system, plus a mandated rate of return on investment”.  Under the arrangement GRU customers who invest in solar PV systems can sell the electricity generated back to GRU at a fixed price of $0.32 per kilowatt hour for 20 years.  Initially hailed as a landmark decision for community solar the program has featured measurable successes along with high profile critics. 

The biggest criticism came unexpectedly from the leader of one of the largest solar industry association.  Solar Energy Industries Association (SEIA) President & CEO Rhone Resch had the following to say about the program at the PV Industry forum in May:

"You are now seeing Gainesville Florida had the first Feed-in Tariff in the country. It was poorly designed; it will probably give Feed-in Tariffs a bit of a black eye in the US. But at least it was the first."

Some of the "poor design" aspects Mr. Resch may have been talking about include no application fee to weed out speculative projects, verification of financing, no requirement for drawings of proposed projects, not requiring systems to be built on existing structures which allowed for too many speculative projects.  All of these criticisms are legitimate when consideration is given to how fast this program was able to be up and running.  However, Mr. Resch appears to suggest that the only companies qualified to take part in solar expansion in Florida are large utility companies and national corporate interests with the following statements:

"So until the bigger companies really start to take a role in this particular program and they are in the queue, but what you are going to find is the first tier of projects that have received acceptance probably won’t ever get constructed. So Gainesville after six months is going to have to say “alright fine you guys aren’t going to be able to get it done, let’s go to the second tier” and that’s where you start seeing the SunEdisons and the Conergys and those kinds of companies who will be able to actually build some of these projects."

Apparently in Mr. Resch's world small business has little place in the expansion of renewable energy programs.  The Gainesville feed-in-tariff, the first such program in North America did not go off without a hitch and so that means we don't have enough corporate control of the process.  Apparently Mr. Resch has not been paying attention to utility costs in the state of Florida.  With large utility corporations in control of the process we have seen nothing but increased costs passed on to the consumer again and again, most having nothing to do with renewable energy.  It makes you wonder if Mr. Resch and the SEIA have gotten too cozy with the large utility companies and the lobbyists that deliver their demands. 

Rhone Resch's opinions aside let's look at some of the positive developments with the Gainesville feed-in tariff. Experts believe Gainesville’s feed-in tariff program will increase local installation of solar PV systems by an average of 1000 kilowatts per year over the next 20 years. The cost?  Approximately 1% accross the board to GRU customers. Less than one month after being implemented in March, 2009 GRU had already received proposals for approximately 12 megawatts of solar PV energy. As of September GRU has accepted enough applications to generate solar PV electricity to meet the program’s targets through 2016 and there were 36 solar PV systems already installed with a total capacity of 210 kilowatts.

According to Harald Kegelmann, CEO of Advanced Solar Technologies, a Gainesville solar installation company, "GRU has done an excellent job designing a FIT policy in a very short time.  But being the first always means that there are growing pains.”  Some additional improvements suggested by Mr. Kegelmann are educating local investors, engaging stakeholders to help validate feed-in tariff rates and channel business to local firms and setting aside a portion of the program quota for households, schools, public buildings and non-profit organizations.

It seems to me that if the ultimate goal is more renewable energy projects large and small we should embrace the feed-in-tariff model and strive to improve it to work for everyone.  Why is there no government sanctioned body in the state of Florida to study this issue and tweak it to provide for new green jobs and energy savings throughout the state?  Could it be that the energy lobby is deeply entrenched in this state and therefore what little urgency there is for renewable energy is focused on large corporate utility projects? 

Regardless, the action taken by the city of Gainesville and Gainesville Regional Utilities should be commended and we should allow them the time to refine and improve the program before nitpicking the process. 

Don't look now but another big player in the home improvement market is banking on solar taking off this year.  Lowe's has announced that they will begin selling 13 home solar packages on their website and make them available in stores by the end of the month. 

The solar panels themselves will be manufactured by Akeena Solar and Brightwatts, a Florida-based photovoltaics company. The 50-watt panel also comes bundled together with a Duracell power station that has AC and DC outlets and an alarm clock-radio built in.  The price: $350 or $7/watt.  At this price Lowe's must be counting on do-it-yourself consumers to take on solar installation to mitigate the cost. Besides that fact a 50-watt system is not going to power much, maybe a couple of lights or a radio. 

There is also an $80 watt solar system available at a cost of $500 or $6.25/watt manufactured by Sunforce. 

Although this is a positive sign about the prospects of the home solar industry taking off in the near future I do not expect sales of these small home units to take off, at least right away.  In order for do-it-yourself solar to really gain momentum prices need to continue to drop significantly.  No matter how simple you make the installation it still remains a labor intensive job that needs to be done right.  In order to get consumers to take on this responsibility it better be cheaper and provide more significant energy savings. 

A cooperative effort in the State of Florida to find new and better methods of implementing renewable energy solutions is off and running and the possibilities are exciting.  According to their website the Florida Energy Systems Consortium (FESC) was "created by the Florida State government to promote collaboration among the energy experts at its 11 supported universities to share energy-related expertise. The consortium assists the state in the development and implementation of an environmentally compatible, sustainable, and efficient energy strategic plan."

According to a report by Greentech Media, The following projects are currently underway by the FESC:

Solar-Powered Desalination: This research focuses on using the sun to create drinking water from seawater. The process involves using solar energy collectors to heat the seawater at above the boiling point to collect evaporated water, which then contains no salt. The vapor is condensed after going through a heat exchanger that uses cold seawater. The fresh water is then position to fall 10 meters or more to run a vacuum, which increases the evaporation rate. The brine, with concentrated salt, is sent back to the ocean.

Germ Killer From the Sky: Early research is in place to use solar energy to disinfect water. The idea is to create a catalyst using materials such as titanium dioxide that can absorb sunlight and create free radicals. The free radicals then seek out and kill microbes in the water.

A Cooler Way to Generate Solar Thermal Power: Solar thermal power needs to be cheaper in order for it to be competitive with conventional power, Anderson said. Cutting the equipment cost by about 50 percent is the way to do it. But how? Researchers are exploring the use of ammonia to generate solar thermal power at a much lower temperature. The lead researcher of the project, Yogi Goswami, has gotten funding from venture-backed and India-based SunBorne Energy, where he serves as its technology advisor, to commercialize his research. He's planning a pilot plant at the University of South Florida. 

Solar Cell/LED/Battery Module: A solar cell produces direct current. A light-emitting diode runs on a direct current. A battery can store direct current. So why not combine them together to create a lighting system with energy storage? That's idea behind the research to build a solar cell with transparent organic material on top of an organic LED. The LED emits light downward and sits on top of a transparent platform that's embedded with lithium-ion batteries. The solar cell charges the battery during the day, and the batteries can power the LED light at night.

With such a lack of government support as well as a Florida Public Service Commission that does not appear committed to renewable energy it is great to see the university system take the lead on renewable energy innovation. 

A Palm City Florida solar company, SOL Inc.,  has developed a new light that protects sea turtles from distraction while nesting on Florida beaches. Sea turtle hatchlings are attracted reflections of light off water to make the trip from their nests to the ocean but they can be easily distracted by bright lights from buildings on or near the beach. 

According to Sol President and CEO Rick Schuett, the lights use amber light-emitting diodes, or LEDs, with a wave length that sea turtles can’t see.  “It’s not the color of the light that makes it work, it’s the wave length. Amber light has a longer wave than white light.”

Sol donated and installed two of its lights in the parking lot of the Florida Oceanographic Society’s Coastal Center on Hutchinson Island in Stuart.  In addition, Martin County provided a $11,000 grant to install three more of the lights. 

According to Cris Wagner, director of education and exhibits at the coastal center, “During the nesting season (March through November), people find a hatchling or two in nearby parking lots almost weekly.  Hatchlings make their way farther than most people think.”

The Solar Decathlon is underway at the National Mall from now until October 20th and Virginia Tech, with help from Siemens corporation is looking to take home the top prize or at least one of the ten prizes for architecture, engineering, market viability, communications, comfort, appliances, water heating, lighting, home entertainment, and net metering.

One of 20 entries from schools throughout the U.S. and Europe, LUMENHAUS combines open flowing spaces with sustainable responsive architecture that includes the use of passive solar energy systems as well as radiant heating and building materials that are from renewable and/or recyclable sources. LUMENHAUS is a zero energy home powered completely by the sun.

According to Jack Davis, Dean of the College of Architecture and Urban Studies, "LUMENHAUS is a living laboratory. For students, this is an opportunity for the hands-on application of what they learn in the classroom and carry it fourth into their careers. Virginia Tech's entry is funded entirely from external contributors, including the DOE and companies like Siemens, and we wouldn't be here without their help and support."

For their part Siemens provided mentoring by engineer John Hamilton to help guide architect/engineering and computer technology students during both the design and construction phases of the project.

This will mark the third time that Virginia Tech has entered the Solar Decathlon and this may be their strongest entry yet. Regardless of their finish they have provided a fantastic example of the possibilities that exist for zero energy homes in the future.

photo by Suntech

The Solar Energy Industries Association, a representation of the U.S. and foreign solar industry, is crying foul over a decision by U.S. Customs officials to impose a tariff of 2.5 % on solar panel imports.  Customs has decided that most solar panel imports now qualify as generators due to the presence of bypass diodes in the panels themselves.  Worse yet, the decision is retroactive and companies that are delinquent may have to pay double the tariff. The total cost to the industry may be $70 million this year alone. 

Whether or not this is the true reason for the tariff is up for debate.  What is clear is that this move sends a strong signal to countries that are looking to dominate the fledgling U.S. solar industry, such as China and may result in retribution in the form of higher tariffs on U.S. energy exports. 

The timing of this decision is unwelcome to global solar manufacturers who have an abundance of oversupply on their hands due to the global economic crisis.  So far this year prices in the solar panel market have dropped almost 20%. 

This change in policy may counteract to some degree the protectionist policies of the Chinese government which provides Chinese solar manufacturers an unlevel playing field.  The Chinese government offers massive subsidies to it's domestic solar manufacturers even providing 100% financing in addition to low corporate tax rates. 

While I commend the U.S. Customs Department for this tougher stand on foreign solar panel imports, it doesn't go far enough to providing legitimate competition between U.S. solar companies and Chinese manufacturers.  It is unfortunate that many legitimate global manufacturers will feel the sting of this increase.  For that reason I believe we need to take a more focused approach to trade policy in this industry and provide a much higher tariff to countries such as China that not only engage in protectionist policies but also artificially set currency rates.  Don't hamper the ability of U.S. manufacturers to be a player in the global solar market while punishing those countries that don't want to engage in open competition. 

Photo by Solar Aid

According to analysis by the World bank 1.6 billion people in poor countries have no access to electricity. That bears repeating: 1.6 billion people have no access to electricity. According to SolarAid, a British company developing solar projects in Africa, 20% of the household income of people in poorer communities in Africa is spent on fuel. In a world so plentiful in wealth and technology this should never happen.

Now solar power may provide access to energy never seen before in these poorest of countries. Legislators from 11 countries in Southern Africa met this past weekend to "hear how they could supply electricity to their nations without harming the planet". The most promising alternative appears to be off-grid solar which can provide for most energy needs without the need for massive infrastructure such as grid networks.  Africa in particular is uniquely suited to solar energy due to it's large amount of sunlight.

So far the bellweather project is one by the Solar Energy Foundation of Sweden in which they developed and distributed solar-home-systems to 10,000 people in Remu, Ethiopia.  The solar-home-systems provide a small supply of electricity, powered by solar photovoltaic (PV) modules. The system provides enough electricity for lighting and a small piece of equipment such as a radio. The equipment for this project, at a cost of $260 USD was paid for by donations.  Users pay a monthly fee of between 90 cents and $1.20 US. Without additional funding households in poorer countries will not be able to afford the cost of the equipment for projects such as this.

Off-grid solar power may hold the key to civilization for poorer nations now and in the years to come. Think about it, if you were thinking about donating to charity what would be a more effective way to empower people to pull themselves out of poverty or at least ease the suffering that it brings? Give a man a fish and you feed him for a day; give him electricity and you feed him for a lifetime.

To donate to Solar Aid, a charity that brings solar power to poorer nations and communities:

Solar Aid